Asked by sidra jawad on Jun 24, 2024
Verified
The purchaser of a 168 day T-bill with a face value of $100,000 paid $97,320.00 for it. After 60 days, interest rates had increased and she sold the T-bill for $97,833.95. What simple interest rate of return per annum did she realize while holding the T-bill?
Interest Rates
The percentage of a sum of money charged for its use or paid to investors over a period.
T-Bill
Short for Treasury Bill, a short-term government security issued at a discount from the face value and maturing at par.
- Analyze and assess the performance of investment returns over disparate intervals, with an emphasis on T-bills and commercial paper.
- Understand the impact changes in interest rates have on the profitability of disposing of investments prior to their maturity.
Verified Answer
VW
Learning Objectives
- Analyze and assess the performance of investment returns over disparate intervals, with an emphasis on T-bills and commercial paper.
- Understand the impact changes in interest rates have on the profitability of disposing of investments prior to their maturity.
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